RSSNetflix contemplates a tiered streaming model
By Tim Conneally | Published February 2, 2009, 9:37 AM
Certain Netflix members this weekend received a survey from the company in their inbox which asked if users would pay more for premium content.
The survey focused on HBO content, which would add $9.99 per month and give the user instant access to HBO original series and movies. While it is still only an idea by the company, the introduction of a tiered streaming model is a logical next step for the company. It would move the streaming business out of the auxiliary position it currently holds and closer to the company's mail order business which currently has nine different monthly rental plans.
Reed Hastings, CEO of Netflix, has intimated in the past that the subscription model is the only one the company will use. In the company's second quarter 2008 earnings call this summer, he said, "We don't plan to enter the pay-per-view segment where Apple, Amazon, Sony, and others focus, or the ad-support segment, where Hulu, YouTube, and others compete. Both of those segments will likely be substantial but our subscription segment will also be large and will provide Netflix plenty of room for growth over the coming year."
Furthermore, some of the devices which support Netflix streaming -- namely TiVO's HD DVRs and the Roku set top box -- offer pay-per-view through a partnership with Amazon Video on Demand.
Okay but first fix the fact that almost none of the video feeds stream at DVD resolution let alone HD.
"Your connection has slowed, optimizing video based on your new speed"
Yeah I get that all the time....whether on the computer or the XBOX. And I have a steady and reliable 15mb to 24mb DOWN. Ugh.
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|I don't have that issue on my xbox 360 or the tivo...both are wireless, and both will stream and HD movie from netflix the entire way with no issues.
I'm on a 20down/4up FIOS connection
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|Maybe for 4.99 and if it is in HD and 5.1 surround maybe otherwise passs
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|aw, netflix turns evil... what a surprise
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|What's this have to do with netflix "turning evil"?? They're introducing HBO on demand, and will charge for it. I'm pretty sure HBO wouldn't have it any other way anyway...sow hat's the problem??
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|they have the platform, they have the popularity... they bow to please the likes of HBO
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|evil, because it opens the door for them to start charging for other stuff and next time they wont ask first :P
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|So...you're saying, don't add any new features...just stay the way you are and don't charge anymore? I'm pretty sure, even if Netflix wanted to give away HBO for free, HBO would not allow it...
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|They aren't adding anything new, and getting more profit from it. This is genius on netflix's part, but more than likely at the cost of the consumer if they do start charging.
They aren't adding anything new in terms of content, because you can already get whatever shows from HBO through DVDs as it is. They are just supplementing dvds with On-Demand content. So they are actually making more money, because if they do come out with it, that means less people will be getting HBO through DVDs, which means they won't be spending more money for postage. On top of that, if they charge, then they will be getting even more money just to give you the same content you can already get through DVD, just on demand.
I hope they don't start charging, because then they will eventually become no better than the cable company. I can see where they can start charging for "Packages", like how Cable companies charge for "Packages of channels". Hopefully they will stand up for the consumer and not let HBO try to make them charge. Because if that happens, then everyone will start asking for a bigger piece of the pie, then next thing you know, Netflix will be costing ALOT more than just $24/month
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